CENCORP AGREED WITH DANSKE BANK PLC ON AMENDMENT OF FINANCING FACILITIES AND WITH SAVCOR GROUP OY AND SAVCOR INVEST BV ON TRANSFERRING THE LOAN MATURITY DATES - CENCORP HAS RESOLVED ON EXTENSION TO THE SUBSCRIPTION PERIOD OF ITS SHARE ISSUE

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Cencorp Corporation          Stock Exchange Release 10 January 2014 at 16:05 Finnish time              

CENCORP AGREED WITH DANSKE BANK PLC ON AMENDMENT OF FINANCING FACILITIES AND WITH SAVCOR GROUP OY AND SAVCOR INVEST BV ON TRANSFERRING THE LOAN MATURITY DATES - CENCORP HAS RESOLVED ON EXTENSION TO THE SUBSCRIPTION PERIOD OF ITS SHARE ISSUE AND ON EXTENSION TO THE PUBLIC TRADING OF SUBSCRIPTION RIGHTS – CENCORP WILL SUPPLEMENT ITS PROSPECTUS PUBLISHED IN CONNECTION WITH ITS SHARE ISSUE

 

Cencorp Corporation (“Cencorp”) has had financing facility agreement amounting totally to EUR four million with Danske Bank Plc. The agreement's due date is 31 January 2014. On 10 January 2014 Cencorp has agreed with Danske Bank on extending the financing facility agreement until 31 March 2015, however, the extension is subject to Finnvera extending accordingly its guarantee connected to the facility agreement. Finnvera’s current guarantee, connected to the facility agreement, is valid until 29 June 2014. If Finnvera does not extend its guarantee, Danske Bank’s facility agreement signed on 10 January 2014 will be valid until 27 June 2014.   

 

In September 2013, Savcor Group Oy and Cencorp agreed on extending the maturity date of a loan of some EUR 1.2 million, granted to Cencorp by Savcor Group Oy in 2009 and converted into a convertible bond on 25 May 2010, until the end of January 2014. Cencorp has agreed with Savcor Group Oy on extending the loan period until 31 March 2015 provided Danske Bank’s facility agreement shall be valid until 31 March 2015. Should Danske Bank’s facility agreement be due already on 27 June 2014, Savcor Group Oy’s loan shall be due 27 June 2014 accordingly.

 

Cencorp has a loan of EUR one million from Savcor Invest BV, a daughter company of Savcor Group Oy. In September 2013 the loan period was extended until 31 January 2014. The companies have agreed on extending the loan period until 31 March 2015 provided Danske Bank’s facility agreement shall be valid until 31 March 2015. Should Danske Bank’s facility agreement be due already on 27 June 2014, Savcor Invest B.V.’s loan shall be due 27 June 2014 accordingly.

 

As a consequence of the above mentioned issues Cencorp has on January 10, 2014 resolved to extend the subscription period in the share issue resolved and published on December 9, 2013. The subscription period of the share issue has been resolved to extend to end on January 24, 2014 at 16:30 Finnish time. The subscription rights entitling to the subscription of new shares which have not been used before the expiration of the subscription period, January 24, 2014 at 16:30 Finnish time, will expire with no value.

 

In addition, Cencorp has resolved that the subscription rights entitling to the new shares of Cencorp which have been issued in the share issue are traded on the Helsinki Stock Exchange until January 17, 2014 during the standard trading hours.

 

Due to the extension of the subscription period Cencorp will disclose the final result of the share issue as a stock exchange release when Cencorp's Board of Directors has approved the subscriptions on or about January 29, 2014. The new shares subscribed and paid in the share issue will be registered with the Trade Register by Cencorp's Board of Directors, which is expected to take place on February 4, 2014. The new shares are expected to be entered into public trading on February 5, 2014.

 

Due to the extension of the validity periods of the financial agreements with Danske Bank Plc and loan agreements with Savcor Group Oy and Savcor Invest B.V. which Cencopr has, Cencorp will supplement its registration document and the summary and securities note (together the "Prospectus") dated December 9, 2013. Cencorp will publish the supplement to the Prospectus separately after Finnish Financial Supervisory Authority has approved the supplement.

 

Cencorp has resolved that those investors who have committed to subscribe or purchase securities before a supplement is published have a right to withdraw their commitments within two business days since the publishing of the supplement to the Prospectus.

 

 

In Mikkeli, 10 January 2014

 

Cencorp Corporation

Board of Directors

 

For more information, please contact:

Iikka Savisalo, President and CEO, tel. +358 40 521 6082, iikka.savisalo@cencorp.com

 

 

Distribution:

NASDAQ OMX, Helsinki

Main media

www.cencorp.com

 

Cencorp Corporation is a leading provider of industrial automation solutions. The equipment included in the product portfolio designed for depaneling, odd-form assembly, testing and laser materials processing substantially improves the efficiency of customers' production. The product range also includes EMI shielding solutions, RFID antennas, other flexible circuits including for example conductive back sheets used in photovoltaic modules and mobile phone antennas. Cencorp's customers are manufacturers of automotive electronics, mobile phone antennas and photovoltaic modules as well as manufacturers operating in telecommunications and in industrial automation. Cencorp's head office is located in Mikkeli, Finland. The company is part of the Finnish Savcor Group.